HESTA Members Face Financial Stress: Limited Super Access

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HESTA Outage Derails Home Purchase for Retiree, Sparks Member Outrage

By Archyde News | Published: 2025-04-29 23:03:14

Perth retiree Jan Massey faced near financial disaster when a seven-week service outage at her superannuation fund, HESTA, threatened to disrupt her home purchase. Unable to access her funds, Massey was forced to borrow from friends to cover a crucial deposit.

HESTA, one of Australia’s largest super funds, initiated the outage in a planned move affecting over a million Australians. The disruption has triggered notable backlash from members locked out of thier accounts until June.

Retiree Scrambles to Secure dream Home

Massey stated that she only became aware of the HESTA outage when attempting to access her account mid-April, despite the fund’s initial announcement in February. This delay left her unable to withdraw funds before the freeze took effect, as HESTA had advised members to make necessary changes by the end of March.

Jan Massey borrowed funds from friends to pay a house deposit after her super fund whent offline. (Supplied)

Everybody’s struggling at the moment … but also, I didn’t want to lose this house. So you’re kind of in a dilemma, really.

Consumer Advocate Highlights Communication Failings

Xavier O’Halloran, director of Super Consumers Australia, pointed out that many HESTA members likely learned of the outage late due to inadequate communication.

what steps shoudl funds like HESTA take to restore member confidence?

Interview: Xavier O’Halloran on the HESTA Outage and Its Impact

Published: 2025-04-29

Following the recent HESTA superannuation outage that significantly impacted members,Archyde News spoke with Xavier O’Halloran,Director of Super Consumers Australia,to understand the wider implications.

The Outage and Its Ripple Effects

Archyde News: Mr. O’Halloran,thank you for joining us. The HESTA outage has clearly caused significant disruption. What are the main concerns super consumers Australia has regarding this situation?

Xavier O’Halloran: Thanks for having me. Our primary concern is the lack of dialog and the practical impact on members, especially those like Jan Massey attempting critical financial transactions.The fact that people were locked out of their funds during a life event like purchasing a home highlights a serious operational issue.

Archyde News: The impact on an individual like Jan Massey is quite striking. How significant is the potential for similar cases?

Xavier O’Halloran: We believe there are likely numerous other members in similar situations. Retirement funds are meant to provide easy access to finances, but due to this, these funds have not been readily available when needed. The delay in providing access will have wide-reaching effects and will also have a detrimental impact on members’ trust in the fund.

Communication and Member Trust

Archyde News: HESTA has stated the outage was a planned upgrade. Do you feel the fund adequately communicated the risks involved to its members?

Xavier O’Halloran: The initial communication, from what we understand, was not sufficient. Many members were likely unaware of the severity of the potential disruption until it was too late. Clear, proactive communication is crucial, notably when dealing with people’s life savings.

Archyde News: Beyond individual financial hardship, what broader implications does this outage have for the superannuation industry?

Xavier O’Halloran: This event could erode member trust in the sector. When people cannot access their funds when they need them, it puts the whole system under scrutiny.There’s also the question of whether existing regulations are sufficient to protect members during such operational upgrades. APRA will likely be looking at this outage very closely.

Looking Ahead

Archyde News: what steps should funds like HESTA take to restore member confidence?

Xavier O’Halloran: Firstly, providing immediate support to those affected. Secondly, transparent communication about what went wrong and what has been done to prevent this happening again. And review their communication strategies for future system upgrades, considering the needs of all their members.

Archyde News: The impact of the HESTA outage is still unfolding. What is the most critical takeaway for superannuation fund members?

Xavier O’Halloran: It’s a reminder to regularly check in on your superannuation, confirm your contact details are up to date, and be aware of any communications from your fund. Read the fine print, and understand your options. And, members should feel empowered to demand better service and communication from their funds.

Archyde News: Mr. O’Halloran, thank you for your insights.

Xavier O’halloran: My pleasure.